The federal court system assists those who are filling bankruptcy by helping them to get rid of their debt. A business or an individual can file bankruptcy and attempt to get rid of all their debt by going through the federal court system. In order to file this type of bankruptcy you must give up all of your property and sell it to pay off your debt. During a bankruptcy process an individual’s assets is liquidated In the state of Florida, certain bankruptcy exemptions laws exist that keep creditors from taking certain types of property during bankruptcy. Those individuals who are seriously contemplating bankruptcy should find out about these exemption laws. There are federal and state laws that provide bankruptcy candidates with helpful exemptions.
By studying each exemption bankruptcy candidates can understand exactly what is protected by law. One of the biggest concerns for anyone who files bankruptcy is what happens to my family and me after they seize my home. The good news is according to the Florida Homestead Exemption, your home is protected from creditors. According to Florida law, your home is protected during bankruptcy procedures and therefore cannot be seized. However, you should know that a few important stipulations do exist.
The size of any property located in the city cannot be more than 1/2 acre. If it is located in the country or a rural area the property cannot cover more than 160 acres. Once these conditions are met you, your spouse or even your child can save the home under the Homestead Exemption when filing bankruptcy. This is the reason why people still get a chance to keep their million dollar homes even after filing bankruptcy. Regardless of the amount of money you owe or the value of your home you are allowed to keep possession. When individuals go through bankruptcy proceedings in Florida their pension is protected.
Company retirement accounts, disability checks and any other government income are all protected from creditors. Individuals can rest a little easier knowing that their hard earned pension is not in danger. Payments such as child support, workers compensation and alimony are also exempted from bankruptcy and cannot be used as payment to creditors. Prepaid College Funds and other types of prepaid savings account are protected during bankruptcy. Accounts where you have put aside money for your child are not involved in bankruptcy proceedings. When you file bankruptcy money that is put into a Medical Savings Account is safe according to the Florida exemption laws. As a Florida resident it is very important to be aware of all of your available bankruptcy choices.
For those who are trying to get started they may want to seek help from a lawyer or research an online bankruptcy website. If you are a resident of Florida, the exemption laws are designed to help you so it is important that you take advantage of those that you are eligible for. Tampa Bankruptcy Attorney, Darrin T. Mish has been helping debtors with debt problems for over a decade. At the Tampa Bay Bankruptcy Center we really care! To get more information on your bankruptcy options visit his website at: http://tampabankruptcy.pro.